Hubbell Inc (HUBB)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,023,200	1,437,900	1,435,500	1,436,900	1,506,000
Total stockholders’ equity	US$ in thousands	2,877,000	2,360,900	2,229,800	2,070,000	1,947,100
Debt-to-capital ratio		0.41	0.38	0.39	0.41	0.44

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,023,200K ÷ ($2,023,200K + $2,877,000K)
= 0.41

From the data provided, we can observe fluctuations in Hubbell Inc.'s debt-to-capital ratio over the past five years. The ratio has ranged from 0.38 to 0.45 during this period, indicating varying levels of leverage. In 2023, the ratio increased to 0.43 from 0.38 in 2022, suggesting an increase in the proportion of debt relative to total capital.

A higher debt-to-capital ratio could indicate a greater reliance on debt financing, which may pose risks in terms of financial stability and debt servicing obligations. However, it can also signify strategic leveraging to fund growth opportunities or optimize capital structure.

It is important for stakeholders to closely monitor changes in the debt-to-capital ratio over time to assess the company's financial health, risk profile, and debt management strategies. Comparing this ratio with industry benchmarks and peer companies can provide additional insights into Hubbell Inc.'s leverage position relative to its competitors.